First-Time Home Buyers Tax Credit

If you are a first-time homeowner, single, and your income is less than $75,000; the income limit for married couples is $150,000; you may qualify for a tax credit equal to the lesser of $7,500 or 10% of the purchase price of your principal residence.

The credit must be repaid to the IRS over 15 years starting two years after the credit is taken. So the credit is really an interest free loan from the government.

You are considered a first-time homebuyer if you did not own a principal residence for three years prior to the purchase of the home.

The home must be purchased between April 9, 2008 to June 30, 2009.